With Rising Volatility Consider Adding Alternatives

The periods of market volatility in February and October 2018 have highlighted the need for disciplined risk management in an investment portfolio. Moreover, increased volatility may be here to stay. That said, the traditional 60% stock/40% bond allocation model that has worked well over the past few decades may not work so efficiently as both stocks and bonds have been challenged recently. Investors and advisors are rightfully concerned about the recent market volatility this year, and now may be a great time to consider adding alternative investments to the mix.

The Rational Tactical Return Fund (HRSTX), an alternative, non-correlated fund to the S&P 500, has historically performed well during times of market volatility, as we have experienced in February and October 2018. The Fund’s investment objective is to seek total return consisting of long-term capital appreciation and income, and the Fund has returned 9.02% YTD (as of 10/31/2018). Warrington Asset Management is the sub-advisor for HRSTX. Warrington’s decades of trading experience and ability to hedge positions quickly helped investors avoid the significant drawdowns during periods of volatility this year and will attempt to capitalize on new opportunities presented by the heightened volatility.

How the Strategy is Performing

The charts below show how the Fund performed during periods of volatility in 2018 versus the broader market.

Volatility Spike #1: February 2018

Volatility Spike #2: October 2018

The maximum sales charge for Class “A” Shares is 4.75%. Total annual fund expenses are 5.20%, 5.45%, and 6.20% for Institutional, Class A, and Class C shares respectively. Class “C” Shares held for less than one year are subject to a 1% CDSC. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month end performance information or the funds prospectus please call 800-253-0412 or visit www.RationalMF.com.

Important Risk InformationInvesting in the Fund carries certain risks. The value of the Fund may decrease in response to the activities and financial prospects of an individual security in the Fund’s portfolio. There are risks associated with the sale and purchase of call and put options. As the buyer of a put option, the Fund assumes the risk of a rise in the market price of the underlying security above the exercise price of the option which will cause a loss of the premium paid for the option. As a seller (writer) of a put option, the Fund will lose money if the value of the security falls below the strike price. The Fund may experience losses that exceed those experienced by funds that do not use futures contracts, options and hedging strategies.

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For more complete information on Rational Funds download and view a prospectus or summary prospectus now or call 1-800-253-0412 for a free prospectus or summary prospectus. You should consider the fund’s investment objectives, risks, charges, and expenses carefully before you invest. Information about these and other important subjects is in the fund’s prospectus or summary prospectus, which you should read carefully before investing. Investing involves risk, including loss of principal. There is no guarantee that this, or any investment strategy, will succeed.